Question
Hi, my teacher posted this question: A ship next year is worth 1100 in up market, 230 in down market. The probability of up-market is
Hi, my teacher posted this question: A ship next year is worth 1100 in up market, 230 in down market. The probability of up-market is 65%. owners can choose to scrap the ship 275 now or 320 in one year. cost of capital = 10%, rf = 5% beta =1. a) what is standard NPV b) what is DTA NPV c) how much is the flexibility worth? the answer is supposed to be: a) 446.2 b) 466.8 and c) 481.7
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
